$1 Billion Foreclosure Program intended to help unemployed and impoverished homeowners with short-term help and thereby shun foreclosure had failed to reach its objective of serving more than 30,000 homeowners over 32 states. Only $ 432 million will be spending for the purpose and the rest will return to US Treasury as stated by a government official.

The Emergency Homeowners’ Loan Program, run by the Department of Housing and Urban Development had fixed September 31^st as the deadline to receive applications after giving extension twice. Out of 10,0000 applicants, only 1832 were approved as the rest failed to meet eligibility requirements or to provide with  requisite documentation. The delay by HUD to implement the programme is supposed be the reason for fewer applications received. People were left with less time to study the programme and apply.

Of 32 states, HUD is administering the program for 27 states, and five states are doing their own as they already had similar programme.

$1B Foreclosure Programme failed to turn out as expected

Report by Lydia Chitra Jacob